AGC Flat Glass Philippines, Inc., formerly Asahi Glass Philippines, only flat glass manufacturer in the country, has warned that it would post losses if the government refuses to renew safeguard dutie…
AGC Flat Glass Philippines, Inc., formerly Asahi Glass Philippines, only flat glass manufacturer in the country, has warned that it would post losses if the government refuses to renew safeguard duties on imports due to expire in December 2009. AGC Flat Glass Philippines, Inc., formerly Asahi Glass Philippines, has announced that it will not be able to compete with the low landed cost of imported products as it has yet to complete a programme designed to boost its competitiveness. “Terminating the safeguard measure at this time would be premature. It would result in petitioner incurring financial losses and fatally hinder its adjustment efforts to adjust to global competition,” the firm stated in a paper submitted to the Tariff Commission on 23 September 2009. “Terminating the safeguard measure would make the landed cost of imported products lower than petitioner“s cost to produce and sell. Confronted with this situation, [we] will be forced to adopt a policy of price parity with imported glass in order to protect [our] market share. This policy would result in financial losses and derail [our] adjustment plan,” AGC Flat Glass Philippines said. The government currently puts a duty of PHP 3,583 per ton of clear float glass and a PHP 4,526 duty on tinted glass. The policy, which has been in effect for six years, can be extended for four more years as per the Safeguard Measure Act. However, Comglasco Aguila Glass Corp., an importer of flat glass, said that extending the safeguard measure for another four years would “further the monopoly of [the petitioner] … and the consumer will be forced to purchase more expensive glass.” AGC Flat Glass Philippines had 80% of the clear float glass market and more than 50% of the tinted float glass market in the first half of 2008, as per data from the Tariff Commission. With regards to AGC Philippines“ admission that was still unable to compete with importers“ prices even after six years, Comglasco Aguila Glass stated that the law provides for the measure to be “terminated where the benefiting industry fails to show any improvement.” The commission will hold public hearings to get more data regarding the matter the third week of October 2009 before submitting recommendations to the Trade department.